Rhythm Biosciences aims to advance cancer test with raise of up to $3.75m

• Rhythm Biosciences to undertake capital raise of up to $3.75 million
• Proceeds to advance its products including blood test to detect colorectal cancer
• ColoSTAT progresses toward commercial release following validation of second-generation Beta kit

Special Report: Rhythm Biosciences is undertaking a capital raise of up to $3.75 million to advance development of ColoSTAT, its second-generation simple blood test to detect colorectal cancer, along with geneTYPE genetic risk assessment.

Rhythm Biosciences (ASX:RHY) said a minimum of $3.15m up to $3.75m would be raised with 35m to 41m fully paid shares at 9 cents each.

One free attached listed option per new share will be issued at an exercise price of 20 cents and expiry in November 2027.

CPS Capital Group has been appointed lead manager and broker for the capital raising. The placement is open to professional and sophisticated investors who are eligible through CPS Capital, while SP Corporate Advisory (Spark Plus) will manage investor allocations in the Asia region.

The placement shares will be issued in a single tranche, with the attaching placement options requiring shareholder approval at the company’s next general meeting scheduled in November.

Funds to advance Rhythm’s novel products

The medical diagnostics company, which is focused on simple, affordable blood tests for early cancer detection, said proceeds of the capital raise would be used to advance its products and for working capital.

Rhythm’s blood-based test for early detection of colorectal cancer ColoSTAT, is progressing toward commercial release following successful validation of its second-generation Beta kit.

In December 2024 Rhythm announced it was acquiring the geneTYPE genetic risk assessment covering assets, IP, licensing, contracts, and employee entitlements.

The multi-risk genetic assessment tool estimates an individual’s personalised risk of developing certain common diseases, primarily cancers, by combining genetic information with clinical and lifestyle factors.

Following its acquisition Rhythm secured reinstatement of NATA (National Association of Testing Authorities) accreditation for the geneType laboratory.

The milestone also completed the laboratory integration and paved the way for commercial rollout of ColoSTAT as an in-house in vitro diagnostic (IVD).

Rhythm relaunched geneType in March 2025 for six major cancers in the US and Australia, with ongoing growth in the two markets.

The company said it was now positioned for upcoming value inflection points as it expands commercialisation and global distribution of its simple cancer diagnostic solutions.

Several near-term catalysts for Rhythm

Rhythm has several upcoming catalysts for the remainder of CY25 and into CY26 including final clinical validation of ColoSTAT in Q3 CY25.

The ColoSTAT in-house IVD launch –  subject to NATA review –  is forecast for Q4 CY25, while commercialisation of the test and further development of strategic partnerships is forecast for Q1 CY26.

The company aims to establish key commercial partnerships for geneType in Q3 CY25 and broaden its test menu, adding more conditions to the portfolio in Q4.

This article was developed in collaboration with Rhythm Biosciences, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.